The tax system in Thailand is relatively straightforward and simple, even if the tax rates for an expat in a senior management position can be quite high. Taxes are offset by the low cost of living, which makes taking an expatriate position very financially attractive. Income taxes are calculated on a progressive scale. Expats earning more than 4,000,000 Baht per year will pay 37% in taxes. The key to a low tax rate is to employ a good tax consultant if the firm does not already have one on the team.
Many expats get around some of the income tax by maximizing their deductions through investments in long term income funds. It’s possible to deduct as much as 500,000 Baht a year using this method.
Thailand is by no means a tax haven, though offshore income that is not remitted to Thailand is not subject to taxation, but with the advice of a skilled tax consultant, it’s possible to limit tax payments to the minimum.